Government Loses Solar Appeal

Overview

The Governments Department Of Energy and Climate Change has lost its battle with the Solar Panel Industry over the Feed In Tariff (FIT) Rate

How Much Money Should I Receive from the Scheme?

The Feed in Tariff Rate was introduced by the Government on the 1st April 2010 and guarantees a set amount of income for all electricity generated by a solar panel system installed on the roof of your property: (See what solar panels could do for you »)

The type & size of the solar panel system installed on the roof of your property determines how much you will receive. PV solar panels installed from the 1st April 2012 will receive 21 pence per kilowatt an hour for registered installations from 12 December 2011. Coupled with the payment for generation of electricity you will also receive on top of this 3.1 pence per kilowatt every hour electricity is exported back to the grid. The total combined is 24 pence per kilowatt for every hour.

What is the Fuss Over

The Department Of Energy and Climate (DECC) Change proposed to cut the Feed in Tariff rate scheme for solar subsidies at the end of October 2011. This sparked an out cry of anger, confusion and distrust from the Solar Panel Industry because from their point of view this was seen as government going back on their word & trying to push through unlawful policy changes in an attempt to mislead customers.

The Ruling on the Case

Thanks to the decision by a panel of high court judges that the way in which the Government acted in order to slash the solar Feed in Tariff Rate was indeed unlawful, the DECC is obligated stick to its original plan which means anyone installing a solar PV system on their rooftop of up to 4kW will be entitled to receive the higher Feed in Tariff rate of 43.3p/kWh for entire duration of the solar Panel Scheme over a 25 year period.

What does this Mean?

The ruling outlined as aforementioned has set to spark off a new rush from consumers to install a small scale Solar Panel system before the deadline of March 3rd 2012 to benefit from the higher rate of 43.3 pence/kWh, before this drops down to 21/kWh after the deadline. The Solar Panel industry is set to receive a mad rush in the next coming weeks as consumers scrabble to get their systems set up, however for the time being the Industry has received renewed hope even though the government has threatened to appeal the decision to the Supreme Court.

The Future of the Solar Panel Scheme

One would hope that the Government will not attempt to threaten the renewable energy market in the future by implementing counter productive measures in a bid to cut its own costs down further amid tough economic times, however if it does take its case to the Supreme Court, a similar ruling one would hope would be implemented to give everyone peace of mind and confidence in the Solar Panel scheme.